If your divorce involves complicated financial concerns, you might consider working with a Certified Divorce Financial Analyst, or CDFA. A CDFA can help you prepare to negotiate for alimony, the division of assets and retirement benefits and can explain tax law and how this can impact your divorce settlement
The benefits of using a CDFA
The divorce process is often complicated, time-consuming and costly. Working with a CDFA can relieve some of the pressure that relates to financial considerations. There are many ways a CDFA might be able to help you with a divorce, including:
• Explaining how alimony works
• Helping you create a realistic budget for your post-divorce life
• Identifying and organizing your assets in preparation for your negotiations for the division of property
• Analyzing your assets and how their value will be affected short- and long-term
• Reviewing the tax implications of financial decisions
• Looking at pensions and other retirement accounts
• Helping spouses figure out how to proceed with any joint business ventures
What preparation does a CDFA need?
CDFAs need to complete training and certification to offer their services. They usually also have a background in law, financial planning or accounting. While they are not a substitute for the services provided by a divorce lawyer, they often work together with yours as part of your divorce support team. CDFAs should be members of the Institute for Divorce Financial Analysts or similar associations that provide certification after approved training.
A CDFA can become a valuable member of your divorce team since the outcome will often predict your financial stability for the future. Ask clear questions when you interview potential CDFAs and choose the one you feel you can trust with your important information.